The USDA has announced $12 billion in one-time payments to help American farmers offset rising input costs, inflation, and trade-related disruptions. Most of the funding will be distributed through the Farmer Bridge Assistance (FBA) Program to eligible row crop producers, with payments expected by February 28, 2026. Farmers must ensure accurate 2025 acreage reporting by December 19, 2025, to qualify. Unfortunately, there is no grace period for reporting so farmers must act quickly to be eligible. To help clients, prospects, and others, Dermody, Burke & Brown, CPAs, has summarized the key details below.

FBA Program Overview

The Farmer Bridge Assistance Program follows several temporary USDA relief efforts launched over the past two years and represents the administration’s latest effort to address ongoing cost pressures facing U.S. agriculture. Unlike disaster programs tied to specific weather events, the FBA Program is designed to provide broad-based economic relief tied to production activity, rather than reimbursement for individual losses. The program is administered by the USDA Farm Service Agency (FSA) and funded through the Commodity Credit Corporation (CCC).

Of the $12 billion authorized, $11 billion will be distributed through the program to eligible row crop producers. The program applies to producers of the following crops: barley, canola, chickpeas, corn, cotton, crambe, flax, lentils, mustard, oats, peanuts, peas, rapeseed, rice, safflower, sesame, sorghum, soybeans, sunflowers, and wheat.

Eligibility is limited to producers with adjusted gross income (AGI) below $900,000, and payments are capped at $155,000 per person or legal entity. These limits apply regardless of acreage size. Payment and income limits are applied at the individual or legal entity level.

Payments will be calculated using a uniform national formula, rather than individual farm-level loss documentation. The formula will rely on 2025 planted acres reported to FSA, combined with USDA cost-of-production estimates, national yield and price data, and economic modeling of crop-year losses. Commodity-specific payment rates are expected to be released by the end of December 2025.

The remaining $1 billion of the $12 billion in bridge assistance is reserved for commodities not covered under the FBA Program, including specialty crops and sugar. USDA has stated that additional analysis is required to determine payment structures and timelines for those commodities, and further guidance is expected. Development of those payments is not expected to delay implementation of the FBA Program for row crop producers.

Participation in crop insurance is not required to receive FBA payments. USDA stresses that the program is not intended to replace insurance coverage or other risk management strategies. Producers are encouraged to review risk management tools available under the One Big Beautiful Bill Act. 

This is not a loan program. Payment issued under the FBA Program will be treated as taxable income for the 2026 tax year.

How to Apply

Farmers will want to review and finalize 2025 acreage reports with the local FSA office. All information should be accurate and complete. Next, the USDA plans to issue pre-filled applications, which will then be submitted through local FSA offices or approved through online portals. Farmers who do not need to update acreage information may not need to take additional action at this time.

Key dates include:

• December 19, 2025 (5:00 p.m. ET): Acreage reporting deadline

• End of December 2025: Commodity-specific payment rates announced

• February 28, 2026:  Expected payment

More Guidance Needed

The USDA has outlined the basic structure of the program, but there are details that have not been finalized. Additional guidance is expected in the coming months. Open questions include: 

How will payment caps and AGI limits apply to operations with multiple owners or entities?

The USDA has not yet said how payment caps and AGI limits will be applied across multiple owners or legal entities, including partnerships and LLCs. It’s also not clear how payments will be allocated when operations involve related entities.

When will payment amounts be finalized and communicated?

Commodity-specific payment rates are expected to be released by the end of December 2025. However, USDA has not said when or how they will release farm-level payment amounts. Until then, producers will likely need to estimate payments using reported acreage once rates are available.

Can acreage reports be revised after the reporting deadline?

USDA has confirmed that the December 19, 2025, 5:00 p.m. ET acreage reporting deadline is firm. The agency has not addressed whether reports submitted by that deadline may later be revised for clerical or administrative errors, or how such revisions would affect eligibility or payment calculations.

USDA has indicated that these issues will be addressed through FSA program notices and county office guidance as the rollout continues.

Contact Us

The Farmer Bridge Assistance Program offers short-term financial support during a period of elevated costs and market pressure. With a limited window to confirm acreage reporting, farmers will want to act quickly. If you have questions about the information outlined above or need assistance with another farm tax or accounting issue, Dermody, Burke & Brown, CPAs, can help. For additional information call 315-471-9171 or click here to contact us. We look forward to speaking with you soon.